In the latest trading session, Sanofi (SNY) closed at $41.49, marking a +1.69% move from the previous day. This change outpaced the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.18%.
Heading into today, shares of the drugmaker had lost 8.05% over the past month, lagging the Medical sector's loss of 1.69% and the S&P 500's loss of 1.14% in that time.
Wall Street will be looking for positivity from Sanofi as it approaches its next earnings report date. In that report, analysts expect Sanofi to post earnings of $1.37 per share. This would mark year-over-year growth of 6.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.66 billion, up 2.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.10 per share and revenue of $45.6 billion, which would represent changes of +5.67% and +2.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Sanofi. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. Sanofi is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Sanofi is currently trading at a Forward P/E ratio of 9.96. Its industry sports an average Forward P/E of 12.79, so we one might conclude that Sanofi is trading at a discount comparatively.
We can also see that SNY currently has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.93 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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